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Consider the Following Statements

question 10

Multiple Choice

Consider the following statements:
a.Consumers rent more DVDs from a video store that rents DVDs at a lower price than other rival video stores in the area.
b.Department stores take steps to increase security since they believe it is more costly to allow shoplifting than to install expensive security monitoring equipment.
c.Farmers produce more cotton when its selling price falls.
Which of the above statements demonstrates that economic agents respond to incentives?


Definitions:

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the parties involved to be legally enforceable.

Statutory Novation

The replacement of an obligation to perform under a contract with a new obligation or party, as recognized by statute.

Effective Assignment

A transfer or allocation that fully accomplishes its intended purpose, often relating to tasks, responsibilities, or legal rights.

Statutorily Assigned

Designated or assigned by law or statute in a formal manner.

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